The Ultimate Guide to Oklahoma Contractor Insurance

Contractor Types We Insure

General Contractors

As a general contractor in Oklahoma, you operate with a lot of freedom since there is no statewide license required. However, this means the real rules are set at the local level by cities and counties, which often require proof of insurance to pull permits. Your biggest risks come from managing multiple subcontractors and overseeing the entire job site. The core coverages you need are General Liability to protect against third-party accidents, Workers' Compensation to cover your crew, Commercial Auto for your work vehicles, and Builder's Risk to protect the project itself from threats like fire, theft, or Oklahoma's severe weather.

Managing subcontractor risk is also a huge part of your job. If you hire an uninsured sub and they cause an accident, the liability can fall on you. That’s why it’s critical to always get proof of insurance from every subcontractor before they set foot on your site.

Electricians

As an electrician, your work carries inherent risks, from a power surge that damages a client's appliances to a wiring mistake that could cause a fire months after a project is finished. To maintain your license with Oklahoma's Construction Industries Board (CIB), you are required to have at least $50,000 in General Liability insurance and a $5,000 surety bond. Workers' Compensation is also mandatory if you have any employees.

While meeting the state minimums keeps you legal, it is not enough to properly protect your business, as most general contractors will require liability limits of at least $1,000,000. Other essential policies include Commercial Auto for your work vehicles, Inland Marine to protect your valuable tools from theft, and Professional Liability (E&O) to cover a client's financial losses caused by a mistake in your design or advice.

Plumbing

For an Oklahoma plumber, the risks are constant, from an accidental pipe break that floods a client’s home to a faulty installation that causes damage long after you’ve left the job. To get and keep your state contractor license from the Construction Industries Board (CIB), you are required to have a surety bond and a general liability policy. However, the state minimum coverage is rarely enough for most professional jobs, where general contractors will demand much higher limits.

Your core insurance toolkit should include General Liability with strong "completed operations" coverage, Workers' Compensation for your team, Commercial Auto for your work vans, and Inland Marine insurance to protect your expensive tools and equipment from theft. Because your advice and system design can lead to financial loss for a client, a Professional Liability (E&O) policy is also a smart investment to cover mistakes that go beyond simple accidents.

HVAC

As an HVAC contractor, you work with electricity, chemicals, and heavy equipment, creating risks that range from property damage to serious injuries. An undetected leak from an AC unit can cause major mold damage over time, and a faulty installation can lead to a fire, exposing your business to liability long after the job is complete. The Oklahoma Construction Industries Board (CIB) requires you to carry a $5,000 surety bond and at least $50,000 in General Liability insurance to maintain your license.

However, most commercial jobs will require a much higher limit, typically $1,000,000. Beyond General Liability and Workers' Comp, it's critical to have Inland Marine coverage for your tools and a Professional Liability (E&O) policy. E&O is crucial because it covers financial losses from professional mistakes, like an undersized unit that leads to high energy bills, which a standard General Liability policy will not cover.

Roofing

Roofing is one of the most dangerous jobs in construction, and Oklahoma has strict rules to match. To work legally, you must register with the Construction Industries Board (CIB), which requires proof of both General Liability and Workers' Compensation insurance. The liability limits are high: $500,000 for residential roofers and $1,000,000 for commercial roofers. Workers' Comp is mandatory for commercial work and is a smart choice for residential work, as misclassifying your crew as 1099 contractors carries huge risks.

If your insurance lapses, the CIB will immediately suspend your registration, making it illegal for you to work. Also, remember that a 2022 Oklahoma law makes it illegal for a roofer to pay or waive a customer's insurance deductible. Focusing on professionalism and compliance is the best way to build trust and avoid fines.

Masonry

Masonry is a physically demanding trade with unique risks, from an employee dropping a tool on a client's property to a pedestrian being injured near your work area. Your greatest liability often comes after the job is done, as a flaw in a brick veneer wall could cause a collapse years later, leading to a massive claim. While Oklahoma doesn't have a statewide license for masonry, cities like Oklahoma City and Tulsa require you to register and show proof of General Liability and Workers' Compensation to get a permit.

Key coverages include General Liability with strong "products-completed operations" to protect you from long-term defects, Workers' Comp for your crew, Commercial Auto for your trucks, and Inland Marine to protect your saws, mixers, and scaffolding from theft or damage. Pay close attention to any "masonry veneer" exclusions in your policy, as this could leave a huge gap in your coverage for common jobs in Oklahoma.

Framing

Framing is the high-risk, high-reward backbone of construction where you and your crew face daily exposure to OSHA’s "Fatal Four" hazards: falls, struck-by accidents, electrocution, and caught-in-between accidents. While Oklahoma doesn't have a statewide license for framers, the real rules are enforced at the local level. Cities like Oklahoma City, Tulsa, and Edmond require you to register and show proof of General Liability and Workers' Compensation insurance to pull permits.

The most critical coverages for your business include General Liability, mandatory Workers' Compensation for your crew, Commercial Auto, and Inland Marine insurance to protect your tools. Builder's Risk is also non-negotiable, as it protects the project itself from damage from events like a fire or one of Oklahoma's notorious tornadoes, a risk your General Liability policy will not cover.

Concrete

For a concrete contractor, the risks go beyond a simple accident. Your work forms the foundation of a structure, and a mistake like using the wrong mix for Oklahoma’s expansive clay soil can lead to foundation failure and a massive claim years later. While there’s no statewide license for concrete work, cities like Oklahoma City and Tulsa require you to register and show proof of General Liability and Workers' Compensation insurance to get permits.

Essential policies include General Liability (which does not cover your own faulty work), Workers' Comp for your crew, Commercial Auto for your trucks, and Inland Marine to protect your equipment. Because of the high risk associated with foundation work in Oklahoma, Professional Liability (E&O) is a critical policy that can cover the financial losses a client suffers from your professional mistakes, filling the gap left by your GL policy.

Landscaping

As a landscaper in Oklahoma, you face a wide range of risks, from a mower flinging a rock through a client’s window to an employee suffering heat stroke during a hot summer. Your insurance needs depend on the services you offer. While there is no single state license for landscaping, if you apply pesticides, you must be licensed by the Oklahoma Department of Agriculture, which requires specific liability insurance for chemical application.

Your foundational coverage should include General Liability, Workers' Compensation for your crew, Commercial Auto for your trucks and trailers, and Inland Marine to protect your expensive mowers and equipment from theft or damage. If you apply any chemicals, a pollution liability endorsement is a must, as a standard GL policy will not cover claims related to pesticide overspray or runoff.

Drywall

Drywall work comes with its own set of risks, from fine dust damaging an HVAC system to an employee getting injured while lifting heavy sheets. While Oklahoma does not have a statewide license for drywall contractors, cities and counties have their own registration rules. To pull permits in places like Oklahoma City, you will need to provide proof of both General Liability and Workers’ Compensation insurance.

The essential policies for your business are General Liability (which includes "completed operations" coverage for claims that arise after a job is done), Workers' Comp for your crew, Commercial Auto for work vehicles, and Inland Marine to protect your tools and equipment from theft. One of the biggest mistakes to avoid is misclassifying your workers as 1099 contractors to save on insurance, as Oklahoma has strict rules and penalties for this.

Flooring

As a flooring contractor, you face risks from the moment you step on a job site, like accidentally gouging a client's custom baseboards, to months after you leave, such as a hardwood floor buckling due to an installation error. While Oklahoma doesn't issue a specific license for flooring, you are still expected to meet professional insurance standards. Cities like Oklahoma City require contractors to register and show proof of General Liability and Workers’ Compensation coverage to work legally.

Your core insurance should include General Liability, Workers' Comp, Commercial Auto, and Inland Marine to protect your tools while they are on the move. It is critical to understand that your GL policy will not pay to fix your own faulty work. For that, you need a separate Professional Liability (E&O) policy, which is designed to cover the financial losses a client suffers because of your professional mistakes.

Painting

For a professional painter, the most common risks involve property damage, from overspray drifting onto a client’s car to a paint can spilling on a hardwood floor. While Oklahoma does not have a statewide license for painters, cities like Oklahoma City require contractors to register and provide proof of General Liability and Workers' Compensation insurance. Furthermore, if you work on homes built before 1978, you must be EPA Lead-Safe Certified, as a standard insurance policy may not cover claims related to lead contamination.

The three core policies every painter needs are General Liability, Workers' Compensation for your crew, and Commercial Auto for your work vehicles. A common and costly mistake is to misclassify your employees as 1099 contractors to avoid paying for workers' comp, a practice that can lead to major fines and legal trouble in Oklahoma.

Carpentry

As a carpenter, you face daily risks from power tool injuries and falls to client property damage, like accidentally drilling into a water pipe. While Oklahoma doesn't have a statewide license for general carpentry, the real regulations are at the local level. Cities like Oklahoma City require you to register as a contractor and show proof of General Liability and Workers' Compensation insurance before you can pull a building permit.

The essential policies for your business include General Liability, Workers' Comp (which is strongly recommended even for a solo operator, as personal health insurance won't cover work injuries), and Commercial Auto. Don't forget an Inland Marine policy, which is the only coverage that protects your valuable tools from theft or damage while they're at a job site or in your truck.

Coverage Types We Help You Understand

Workers’ Compensation

Workers' Compensation is a no-fault insurance system designed to protect both you and your employees. If a crew member gets hurt on the job, this policy covers their medical bills and a portion of their lost wages, regardless of who was at fault. In return for providing this coverage, you are protected from being sued by the employee for the injury, a protection known as "exclusive remedy".

In Oklahoma, you are legally required to carry a workers' comp policy if you have even one employee, full-time or part-time. The penalties for failing to comply are severe and can include fines of up to $1,000 for each day you go without coverage and a court order to shut down your business operations entirely.

General Liability

Commercial General Liability (CGL) is the foundation of any contractor's insurance plan, designed to protect your business from claims that your work caused bodily injury or property damage to a third party. This includes accidents like a client tripping over a tool, an employee damaging a customer's property, or even claims of slander or libel in your advertising. It helps cover medical bills, repair costs, and the legal fees to defend your business in a lawsuit.

It is critical to understand what General Liability does not cover. Most importantly, it is not a warranty for your craftsmanship and will not pay to fix or redo your own faulty work. It also does not cover injuries to your own employees or damage to your own tools and equipment, which require separate policies.

Commercial Auto

Your personal auto insurance policy is not designed for work-related driving and almost always includes a "business use exclusion" that allows the insurer to deny a claim if you're in an accident on the clock. A Commercial Auto policy is essential to cover any vehicles you use for business, whether you are hauling tools, traveling between job sites, or sending an employee on a work-related errand.

This coverage protects your business if you or an employee are at fault in an accident that injures someone or damages their property. While Oklahoma has minimum liability requirements, most general contractors and commercial jobs will require you to carry a much higher limit, typically $1,000,000, to even be allowed on site.

Inland Marine

Don't let the name fool you; Inland Marine insurance has nothing to do with water and everything to do with protecting your tools and equipment. Your standard property and auto policies do not cover your gear once it leaves your shop. Inland Marine is the specific policy designed to fill this critical gap, protecting your tools, equipment, and materials from risks like theft, fire, or accidental damage while they are in your truck, at a job site, or in temporary storage.

This coverage is essential for any contractor who takes tools to a job site. If your truck is broken into, your commercial auto policy might fix the broken window, but Inland Marine is what replaces the thousands of dollars of stolen gear so you can get back to work.

Commercial Property

Commercial Property insurance is designed to protect the physical assets your business owns or rents at its main location, like your workshop, office, or storage facility. This policy covers the building itself (if you own it) as well as your "Business Personal Property" (BPP), which includes your tools, equipment, computers, and inventory while they are at your listed business address.

The single biggest mistake contractors make is assuming this policy covers their gear everywhere. It does not. The moment your tools and equipment leave the shop, they are likely no longer covered by your property policy and need separate Inland Marine insurance to be protected on the go.

Errors & Omissions (E&O)

Errors & Omissions (E&O) is a specialized policy that fills a critical gap left open by your General Liability insurance. While GL covers accidents that cause bodily injury or property damage, it specifically excludes paying to fix your own faulty work. E&O, often called "bad workmanship insurance," is designed to cover a client's financial loss that results from your professional mistakes, faulty work, or bad advice.

For example, if you install an HVAC unit that is improperly sized and must be replaced, E&O could cover the cost. While Oklahoma does not legally require you to carry E&O insurance to get a license, many clients and general contractors will require it in your contract before you can bid on a job.

Umbrella / Excess Liability

A Commercial Umbrella policy is a straightforward way to add an extra layer of liability protection over your existing policies. It is designed to kick in after the limits of your primary General Liability, Commercial Auto, or Employer's Liability policies have been exhausted in a major claim. In today’s world, a single serious accident can easily result in a lawsuit that blows past a standard policy limit, putting your business assets and future earnings at risk.

This coverage is especially critical in Oklahoma, which has no cap on the amount a jury can award for "pain and suffering" in a personal injury lawsuit. This unlimited potential for jury awards makes a high-limit umbrella policy an essential defense for protecting your business from a catastrophic financial hit.

Bonds

A surety bond is often confused with insurance, but it works very differently. Insurance is a two-party contract that protects your business from financial loss. A surety bond is a three-party agreement that protects your client. It’s a guarantee you make to your client that you will complete a job according to the contract and follow all state and local laws.

If a claim is paid from your bond because you failed to perform, you are legally required to pay the surety company back every penny. In Oklahoma, licensed plumbing, electrical, and HVAC contractors are required by the Construction Industries Board (CIB) to carry a $5,000 license bond to keep their license active.

Builder’s Risk

Builder's Risk insurance is a special type of property coverage that protects the actual building or structure while it is under construction. It is different from your General Liability policy, which covers damage your work causes to

other people's property; Builder's Risk protects the project itself. This policy covers the structure and on-site materials from risks like fire, theft, vandalism, and weather damage.

This coverage is essential in Oklahoma, where severe weather like tornadoes, hail, and high winds can destroy a project in minutes. Lenders will almost always require a Builder's Risk policy to be in place before they will issue a construction loan. The policy must be secured before the first materials arrive on-site, as you cannot get coverage for a project that is already underway.

Business Owners’ Policy (BOP)

A Business Owner's Policy, or BOP, is an insurance package that bundles General Liability and Commercial Property insurance into a single, simplified policy, often at a lower cost than buying them separately. It’s a great foundational policy for smaller, lower-risk contractors, as it covers common risks like a client slipping at your shop or theft of tools from your primary business location.

However, a BOP is not a complete solution and has critical gaps for most contractors. It is designed for businesses with a fixed location and does not cover work vehicles, employee injuries, or tools and equipment once they leave your shop. To be fully protected, you will still need separate policies for Commercial Auto, Workers' Compensation, and Inland Marine insurance.

Commercial Package Policy (CPP)

A Commercial Package Policy (CPP) is a customizable insurance solution built for contractors with more complex or higher risks. Unlike a rigid BOP, a CPP is flexible, allowing you to bundle different coverages and set higher liability limits to meet the demands of larger commercial contracts. It starts with a foundation of General Liability and Commercial Property, then lets you add essential contractor coverages like Inland Marine for your tools and Commercial Auto for your fleet.

While a CPP is highly customizable, it never includes Workers' Compensation, which must always be purchased as a separate policy. For a growing Oklahoma contractor, a CPP is the smart, scalable choice that can adapt as you take on bigger jobs, while a basic BOP may leave you underinsured and unable to qualify for better projects.

Business Interruption

Business Interruption insurance, also called Business Income coverage, is a financial lifeline designed to replace your lost profits and cover ongoing bills if a disaster forces you to temporarily shut down your business. While your property insurance helps rebuild your workshop after a fire or tornado, Business Interruption is what pays your rent, equipment loans, and payroll for key employees while you're out of commission.

This coverage is triggered by direct physical damage to your property from a covered event, like a fire or storm. It is not required by state law, but it is a critical part of a business survival plan, especially in a place like Oklahoma where severe weather can halt operations for months. Having this coverage can mean the difference between a temporary shutdown and a permanent one.

Cyber Insurance

Most contractors believe their General Liability policy covers them for a data breach, but this is a costly mistake. Cyber insurance is a specific policy designed to protect your business from digital risks like a ransomware attack that locks your files or a data breach that exposes client information. Contractors are prime targets because they handle valuable data like client credit card numbers, project bids, and employee Social Security numbers.

This coverage is more important than ever, as a new Oklahoma law effective in 2026 holds businesses legally responsible for protecting the personal data of clients and employees. A cyber policy helps pay for incident response experts, data recovery, notification costs, and legal defense if you are sued, shielding your business from the massive financial fallout of a digital attack.

What Makes Us Different

Most insurance agencies are happy to sell you a policy and move on. We believe in partnership over price. We are specialists who focus exclusively on blue-collar businesses like yours, so we have a deep understanding of the risks you face on Oklahoma job sites. Our mission is to guide you through the complexity of insurance with education and honesty, finding and fixing gaps in your coverage before they can cause damage. We want to be a trusted partner in your success, giving you the confidence and peace of mind to focus on building your business.